SEC Approved BSTX To Make Blockchain Settlements On Markets

The SEC approved BSTX to make blockchain settlements on the traditional markets but it doesn’t involve crypto trading or other forms of using the blockchain tech as we are reading further in our blockchain news.

The Boston Security Token exchange which is a new facility of the Boston-based BOX exchange, recieved regulatory approval from the US SEC to operate as a blockchain-based securities exchange. The SEC approved BSTX and it was recently launched by BOX and Overstock’s tZERO which sought approval for launching these publicly-traded registered security tokens. The SeC approval to operate as a national securities exchange, allows BSTX to use blockchain technology for faster settlements on them markets:

“The Commission notes that the [BSTX] Exchange’s current proposal does not involve the trading of digital tokens and such a proposal, or any other additional use of blockchain technology.”

While the SEC has denied BSTX permission to offer crypto services, the latest approval allows the facility to use market data feeds, BSTX Market DATA blockchain. BSTX will also use blockchain technology and will help investors experience faster transaction times on the same day or the next day, instead of the standard two business-day cycles on the traditional markets.

 

 

Along with the regulatory approval based on the BSTX rule change proposals, the SEC placed four conditions for BOX in line with the BSTX operations. The requirements included joining the national market system plans that are related to equities trading which will ensure the regulatory Services Agreement with FINRA. In line with the developments, the SEC is also reviewing some of the high-yield crypto lending products offered by Celsius, Gemini, and Voyager Digital. The SEC is also conducting an inquiry into considering registering crypto lending services as securities but reports suggest that the SEC main concern lies with the high yield offering by the lending services.

As recently reported, The latest SEC proposal is looking to expand the definition of a securities exchange which could be harmful to DEFI. The proposal aims to broaden the definition of the exchange to any system allowing the buyers and the sellers to communicate their securities trading interests. If the proposal is approved, it will make it impossible for decentralized exchanges to comply with the new regulation.